Coronavirus Update

Carr's Group Plc - Interim Results Ended February 2020

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CARR'S GROUP PLC ("Carr's" or the "Group")

INTERIM RESULTS

For the 26 weeks ended 29 February 2020

"A resilient H1 performance in challenging markets"

Carr's (CARR.L), the Agriculture and Engineering Group, announces its Interim Results for the 26 weeks ended 29 February 2020 and provides an update on COVID-19.

Financial highlights

 

Adjusted1

H1 2020

Adjusted1

H1 2019

 

+/-

 

 

 

 

Revenue (£m)

200.0

206.2

-3.0%

Adjusted1 operating profit (£m)

10.3

11.9

-13.4%

Adjusted1 profit before tax (£m)

9.6

11.4

-16.0%

Adjusted1 EPS (p)

8.0

9.4

-14.9%

 

 

 

 

 

Statutory

H1 2020

Statutory

H1 2019

 

+/-

 

 

 

 

Revenue (£m)

200.0

206.2

-3.0%

Operating profit (£m)

11.2

10.8

+3.8%

Profit before tax (£m)

10.5

10.3

+1.7%

Basic EPS (p)

9.3

8.3

+12.0%

 

 

 

 

Net debt2, excluding leases, of £25.4m (£20.9m net debt at 31 August 2019 excluding finance leases)

Commercial highlights

COVID-19

  • Health, safety and well-being of our employees remains of paramount importance
  • No material overall impact to date, but significant uncertainty remains
  • Measures implemented, and contingencies planned, to minimise the potential impact on the Group
  • Strong balance sheet with net debt (excluding leases) of £25.4m as at H1 2020 representing 1.2x adjusted EBITDA and undrawn facilities at H1 2020 of £22.4m
  • Cash flow being closely monitored with cash forecasting thoroughly stress tested
  • Payment of interim dividend deferred until full effects of COVID-19 become clear

Agriculture

  • Resilient performance in Agriculture despite challenging market conditions and unseasonable weather
  • In the UK, lower feed and fuel volumes partly offset by strong performance in machinery and retail sales
  • Strong performance at our low moisture feed block plant in Tennessee and enhanced presence in Canada as we continue to expand our geographic footprint in North America
  • Launch of new product ranges including FesCool® in the USA and Pick Block in Europe

1 Adjusted results are after adding back amortisation of acquired intangible assets and non-recurring items

2 Further details of net debt can be found in note 12

Engineering

  • Lower profits due to phasing of contracts in Global Robotics and Global Technical Services
  • UK Service and Manufacturing performed well, benefitting from strong order books across key markets
  • Global Robotics impacted by certain orders for Japan and China being delayed until FY21, but robust medium term prospects supported by a strong and diverse global pipeline
  • Strong order book in Global Technical Services, including the award of a $6.2m MSIP® contract to be delivered into Switzerland during the period
  • NW Total, acquired in June 2019, now fully integrated and performing above expectations

Outlook

As reported in our trading update on 12 March 2020, challenges across both divisions, unrelated to COVID-19, led to a reduction in the Board's expectations for the current financial year.  Based on recent activity, and whilst remaining acutely aware of possible interruptions due to COVID-19, the Board still anticipates a full-year outcome broadly in line with those revised expectations.

Tim Davies, Chief Executive Officer, commented:

"While there remains significant uncertainty over the impact of COVID-19, we are moving decisively on all fronts to address these challenges, ensuring we conserve cash and maintain a robust financial position. We will continue to monitor developments closely and respond accordingly. At this time the health, safety and well-being of our employees, customers and the wider communities in which we operate remain our absolute first priority, and we have implemented measures to protect and support them through these unprecedented times.

"We are confident that our approach and robust business model will ensure the Group is well placed to endure this period of uncertainty and continue to deliver growth in the medium term."